Forex Volume Indicators
One of the main indicators of the market transactions is the Volume of transactions.
The Volume of finished transactions is characterized by an active involvement of participants in the market, its strength and intensity. Volume increases together with a steady uptrend when the price rises, and, hereby, decreases when the price falls. The same happens with a downtrend, the volume increases when the prices fall and decreases as the prices rise. One of the main features of Volume is that it is always a little ahead of price. In forex market, as a rule, there is no way of showing the direct volume of transactions, that’s why an indicator called "Volume", is constructed, which reflects the number of price changes (ticks) during one bar. Volume indicator shows the activity of price changes and it is believed that this activity well correlates with real volume of transactions.
Accumulation/Distribution is a volume-based technical analysis indicator designed to reflect cumulative inflows and outflows of money for an asset by comparing close prices with highs and lows and weighting the relation by trading volumes.
Money Flow Index (MFI) is a technical indicator developed to estimate money inflow intensity into a certain asset by comparing price increases and decreases over a given period, but also taking into consideration trading volumes.
On-Balance Volume (OBV) is a cumulative volume-based tool intended to show the relation between the amount of deals and asset’s price movements.